Robusta Edges Higher But Gains Capped By Harvest Pressure

Neena Rai

 

  Robusta coffee futures nudged higher Friday as harvest pressure in top

producer Vietnam and weakness in New York's arabica market limit gains, but

prices of sugar, cocoa and European Union wheat futures slipped.

  At 1057 GMT, January robusta rose 0.1% to $1,583 a metric ton, after prices

slumped to a three-year low of $1,562 Thursday.

  "London coffee prices are trading sideways, holding around the $1,580/ton

level. Short term, we expect further consolidation around $1,580-1,600/ton

area," Myrto Sokou, senior research analyst at Sucden Financial brokerage,

said.

  London sugar futures for December delivery extended declines to fall 0.4% to

$500.10 a ton.

  The prices have been sliding down from a near one-year high hit last week

when a fire damaged sugar warehouses belonging to the world's largest sugar and

ethanol trader, Copersucar, in Brazil's port of Santos.

  "Reports from Copersucar that damage to port infrastructure is less than

originally feared weighed on prices and contributed to speculative

profit-taking within the complex," Luke Mathews, analyst at Commonwealth Bank

of Austrailia, said Friday.

  November EU wheat futures slipped 0.4% to EUR196.25 a ton, extending declines

from the previous session as traders booked profits after the market hit a

four-and-a-half-month high earlier this week.

  "Prospects of the U.S. 2014 hard red winter wheat crop were increasing with

expectations of rainfall in the U.S. Plains next week that would boost the

wheat crop's growth," Phillip Futures said in a note.

  "The improving prospects of the wheat crop would weigh on the wheat market

going forward but it remains to be seen if export demand for U.S. wheat will

continue to be strong and provide support, especially with wheat from the Black

Sea, Australia and Argentina being plagued with weather concerns," added the

brokerage.

  Cocoa futures for March delivery fell 0.1% to GBP1,701 a ton, after the

market hit a high of GBP1,774 on Oct. 15. The market continues to be supported

by strong demand for the chocolate-making ingredient.